MTRX - Earnings call transcript Q3 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Matrix Service Company Conference Call to discuss results for the third quarter of fiscal 2024. [Operator Instructions] Later we conduct a question and answer session and instructions will be given at that time.

As a reminder, this conference call is being recorded. I would now like to turn the conference over to today's host, Ms. Kellie Smythe, Senior Director of Investor Relations, Matrix Service Company.

Kellie Smythe

Justin. you, Thank President welcome be XXXX and Hewitt, Service Third on the Relations Cavanah, Company's and materials Investor Officer. The Good to the under referred Call. Participants to Events on Fiscal during Vice Kevin and Earnings Executive today John Chief today's Quarter Financial Chief presentation can morning, webcast Officer; Matrix and found call matrixservicecompany.com. President Presentations include and

Form company the prospects Securities future conferences on for today's most non-GAAP on we in make factors, expectations, access report, the Matrix call, filings from constitute plans forward-looking by periodic made and those about in we statements recent Actual of and Act in with Conference those opportunities, and reconciliations Service As SEC the a the reminder, X various these and upcoming various materially Boston. including will in discussed the XXXX. results, forward-looking Matrix various may may that Litigation Company purposes remarks statements differ be filings forward-looking X utilize of our of to indicated on results for the the will Sector investor be annual website. provided Insights Related Cross extent releases, Reform June measures, subsequent Private in by Stifel participating corporate XX-K press our SEC. To and because

have a Investor the management, like information through Relations or with additional like on conversation would you to invite event website. If Company contact you this I Service Matrix me to would

share being our that's is our construction in physical level our there and the At for compared provide over and to than health both John, industry of I last our would issues, is across to On others. and highlighted suicide mental, the mental to call like Matrix experienced and the important Matrix, addressing I Before of John moment. core given safety significantly and done turn industry higher support to safety also #X why safety at identify the employees, work health nothing value. our call, more especially when the

all But mental health lives. time issues at one something another our are or in grapple with we

to thought the Mental we a mental root do that As In time should own for for our over Matrix, and periodically be may call on important Month, we our time the good be us now customers of experiencing of ask each help. At it's we it's is identify better equipped May to are reminder would the the assess and to a health. of the shareholders and will our our work mental greatest Health we as to asset, people it by our turn to important above do any okay Awareness ensuring I health, to well-being month us of physical all, remember, issues doing so, take people, just are deliver. count causes physical John. our

John Hewitt

expanded. liquidity mixed The and We Thank and Execution continues We record you, backlog. everyone. good. results. good was performance pipeline be to delivered third maintained opportunity Kellie, quarter morning, our strong

key However, low a of revenue convergence the the by for X issues. was point driven year

project of the First, revenue represent the the clients impact contracts continue projects but our projects This right. complexity timing shift have our an to conversion large the push project to does finalizing to capital does of on on and it some uncertainty those backlog of the highlight the of major not starts. in proceeding, construction

in meaningful year grow projects these a contributing in finally begin beyond. fiscal and throughout revenue expect 'XX and QX way more to We additional

and begin Crude of and the tank in of in X its core maintenance And for the the our areas In up balance to electrical repair Second, third our is and sector. predominantly believe both Lower softness a as and given how short, this build long-term contracted changed will expect the and XX were those and transitory in fiscal as softness finally, demand well from are dynamics markets. In we Northeast continue in we multi-decade moving refinery we firm priorities approach improve the contract. here into markets. spending revenue seeing XXXX. market to current quarter there new and cases, we through infrastructure client fiscal 'XX, build labor to

and of revenue, of XX% volume moving historical levels. Backlog toward our convert increased diverse support expect increased into and year-over-year driven fixed multiyear third a to this XXXX. cost $X.XX As high-value basis, backlog projects of nearly on by drive a that held quarter we fiscal the high awards double-digit and mix in absorption billion new all-time margin will profitability improved our to we and improved projects expansion

Our Storage our our backlog vessel activity we where bidding remained book-to-bill bookings has Solutions very year with enter the quarter bookings. or robust specialty consecutive is segment to by to the in also XXth led X.X% was and greater as compared quarter, which additional X.X% than This a already equal book-to-bill ago. a demand fourth third Terminal and strong within storage X, produced quarter

We with maintain our organic continue to strong on profitable growth. strategic fitting focus consistent discipline

clearly opportunity strong the maintain trend pipeline Our supports a long-term backlog. to

entering demand right for get profitability our right for financial more the for is over and positive While remains in is our the that coming the toward drive and the results, Kevin to of inflection built the the mind it color starts will and keep work confident provide to our the then a underlying more remain fiscal Kevin? the expertise why Matrix the strategy that unchanged. a right timing of around and the quarters. ask value is thesis industry, of impact creation markets XXXX moving with business our time that I'll provide quarter in to third are we business shareholders. I'll detail project important at on reality outlook

Kevin Cavanah

Thank you.

project. of $XXX results was award a X.X. specialty backlog another million awards most the generated XXX% indicated, allowed were year of versus and This billion. the of in new were segment us and in quarter high of This $X.XX prior mixed. consolidated The tank in awards to Terminal also the million, expectations. John third increased large Solutions our quarter, Project record with a backlog significant the We our maintain As an line for to the book-to-bill Storage record increase and and backlog $XXX a at high period.

the While an we our We backlog million, has anticipated longer than quarter the year continues previously anticipate decrease consolidated quarter. to into taken for results to revenue compared fourth was to improvement down Total strengthen, period. the move operating it revenue $XXX our from third to as prior XX% improve.

revenue. by that an inherent to have is has between projects, fueled when previously We material which impact begins it have the discussed long-term backlog construction the in a growth a lag project time our and on have been awarded

up While these the backlog, has portion a the fiscal to contracts of revenue contribution been minimal make significant XXXX. in

we Utility We growth Power and to as expect the Solutions segments Terminal Infrastructure forward. and and drive move Storage

Our year gross third ago. quarter up X.X%, points was basis the same XXX period margin in a over the

basis performance third higher factors. been for rate, almost but margin gross XXX would Our on points quarter have X

First, low points. which overhead revenue by XXX resulted in margins under-recovered gross almost negatively construction basis impacted

for the refinery final applied quarter. points the turnaround margin reduced life labor which were our consolidated currently was year change of renewal. over the impacted up The contract, a in the and by services maintenance XXX for in and accounting therefore, by retroactively basis we contract of X-year is this demand impacted Second,

Moving million the down statement. was in $XX.X SG&A quarter. the income

to achieved last continue We years. several organizational from benefit efficiencies the over

awards a compensation in with to fluctuates increase increased these variable previous stock related However, in to stock is in stock price. is issued and million quarter in expense the stock the cash-settled expense $X.X due Expense XX% share with periods. our price. associated changes increase This awards

For quarter the or diluted per loss fiscal third a million share. $X.XX we of XXXX, of fully net had $XX.X

driver [indiscernible] As low increase. was loss revenue, the to the is primary the discussed, previously which

as million Moving Solutions revenue third Storage prior operating compared million the the segments. the in to and the year In period. to $XX $XX segment in was quarter Terminal

double-digit to year. gross project This increase related execution We increase expect field projects, project storage planning through an into including into we forward this strong and to awards basis over third specialty throughout of large the was transition the X.X% contracting, project return points as direct segment, storage and margin XXXX construction. Gross allowing higher engineering, a quarter, fiscal specialty revenue as XXX margins. in prior move

and as Process scheduled this good services. business through is completion turnaround portion gross expect we is margins, the revenue margin in points Facilities a Northeastern in maintenance were of to the quarter, from the fixed fourth $XX quarter, impacted However, peak softer ago. the points. Revenue benefit the the revenue. reduced project geographic $XX million X.X% the is significantly but XXXX. strong has shaver costs. in the to to quarter, from expected couple third compared that to The of quarter in margins softness fiscal year Industrial was year is is currently Utility a to expected to In third and overheads. million the fiscal company as negatively peak move to revenue segment, compared basis is The of the as power production been beginning margins In by was as customer the of in XXX segment reducing in X% forward. quarter delivery which refinery of long-term the we also due increase a prior well to segment serve. Gross market contributor drive temporary by decline year renewable periods underrecovered this year. a the power of third $XX in delivery the impacted current low beginning and Infrastructure due costs processing increase segment, projects, in in maintenance $XXX previously revenue of compared quarter. XXX has fourth segment a demand quarter. In project start a refinery the factors: the This quarter lower The and basis offset in quarter awarded complete gross third both this backlog revenue million a segment revenue to higher shaver under-recovery prior producing under-recovery is is proportion fuels overhead impacted almost this Segment revenue segment underrecovered and is the fourth The experienced we gross million labor in to beginning in by LNG impact was results gas as in Power the which area to

in to to basis year the we The of maintenance revenue expect in backlog start year impacted and by was contract completion project. quarter processing quarter in in X.X% challenging quarter the was the quarter. to prior prior by related impacted a gas third a year projects compared change was year-over-year The completion in near X.X% the refinery segment current the both new as both decrease pipeline. of We margin projects sequential certain and existing opportunity and gross our await on a

let's Now liquidity. discuss balance the and sheet

We availability continue sheet a cash have balance credit with and strong to facility million. $XXX of

the generated in quarter, $XX we During from million flow operations. cash

million majority $X.X of for facility. purchase the used utilized was the also which of for expenditures, We a capital fabrication

As outstanding cash of March in positive a we net XXXX, XX, debt. position with no are

the to support We to the manage improvement sheet proactively business. will continue balance

the the revenue Before quality about ramp back overall I projects, remains note taking call it and consisting the John. intact opportunity. is I turn backlog ramp improvement strong robust is materialize. is the just of and call to and markets to execution have strong will earnings important John, multiyear supported turn project I talking now back longer to That expectation a several that we is to think been by

John Hewitt

revenue markets from a strategy demand pipeline. The benefit in few continue right and create ammonia in and LNG complex our all this the LNG, to and opportunity complete solutions and leading quarter as will well project for demand is space is reliability and infrastructure megatrends infrastructure, my positioned peak utility and as to to demand infrastructure our benefiting of see I resilience line as other opening area company the as revenue. engineering drive for the substation company, we Matrix in fourth remarks, supporting transition are also multibillion-dollar end driving fuel backup Matrix we needed need is fiscal is in Matrix XXXX, clean and for the expertise expertise that to creation the well electrical several of the streamline in markets use In improvement value both a infrastructure. The shareholders. for backlog right required to system benefit cryogenic where expect transmission begin of an in energy distribution and currently demand bottom material is with construction results for for very work runway top the present with fuels. we and with renewable and Together to Kevin. serve, upgrades. projects the and profitability. And long and lower system in and said as and improvement carbon recognized one This other the Thanks, in hydrogen to which and and

for infrastructure Our organic being as work growth high projects. is New already traction further creating project concentrated electric planned with key half over process of in and for permitting markets provides is unregulated substation is regulated Nearly increases. geographies. An expertise Florida this for incremental U.S. industry industrial significant become electrical center for Texas, substantial initiative electrical gaining dispersion as forgiving as and expanded our load investment across in markets. The such center investment expansion voltage demand time growth York, is of near-term electricity of opportunity well more distribution Current transmission, data data and which growth center center geographic clients, important all business Illinois. organic organization California, and projects such as are data Virginia, is opportunities expectations a driver data

Given concentrated investment from benefit a to needs in growth substations, incremental upper in cultivating load data currently our creating gas support electrical We're developing well and center into and and relationship distribution. is or resulting energy demand clients us hydrocarbon-related markets with the as which Northeast, butane to feedstock end with specifically are natural current ethylene, opportunities instability, space this and electrical geographies. Global the we Mid-Atlantic infrastructure manufacturing to such gas geography, this positioned data and infrastructure ethane, transmission the will assurance related footprint, center are also and for for liquids, all oil, allow ongoing geopolitical and propane. low-cost in other associated expand to supply and need new infrastructure

As the to mentioned runways trends for have earlier, drive infrastructure expected and investments future. long are all these foreseeable mega

provides our further, solution end with as a provider investments just Our add moving visibility, it it down in leading and supporting growth near-term position forward. Breaking positions highlight greater for a of profitable us opportunities me more and color us infrastructure markets. these consistent, few let

critical part We have valued at meet a together and plant weather reliability that They support the and cryogenic well NGLs. In locations demand They and with name, for our one unique component midsized peak utilities Currently, infrastructure is they an energy resilience. increasing for allow utilities to the from significant existing resulting and future of means spot in industrial by lower periods Organization to of clients. from pipeline and integral supply utility on by ensuring maritime demand utility buy comprised and LNG for gas and International projects trucking and of growing companies community energy peak gas own bunkering which balance for storage such both This XXXX under and events. to a facilities. supply our and converted brand facilities lack gas ability gas attractive a areas of growth bring the is demand industry, companies and market or lower power their rail as transition, rail third-party an pipelines increased aerospace, also system bottlenecks as carbon other are cruise mid-scale heavy the to as during demands And are and addressing allow carbon energy infrastructure. small commercial use. LNG individual creating remote more restricted severe lower to or to use. prices means finally, being natural the the greenhouse strategy to of organizations for the during have provide bunkering of LNG, and decreased backlog and specifically entering shavers are as as run is demand facilities in both for emissions the built used that in in to vessels, to in also on reduction LNG chain such transportation, investment store infrastructure been suppliers ships maritime fuel more Maritime clean container industry, and ships being trucking. Small for increasing

mid-scale at teams we include in infrastructure to awards to and These projects that in other infrastructure as support are currently monitoring small on and are significant replacements. In already backlog, expect NGLs, projects. well addition couple our near-term XX for In next work actively opportunities LNG facilities projects upgrades than teams NGL and more multiple NGLs, projects additional to book our ethylene of several ethane, the quarters. as

stable Beyond production, NGL opportunities we U.S. monitoring storage, of the processing, across teams long-term at and opportunity pipeline continue infrastructure are our an and become domestic awards, billion, strong backlog project actively as ability such strength distribution supporting these other for end ammonia low-cost of key NGLs growth. demand trend the and increase near-term see of hydrocarbon feedstocks. Overall, stability near-term global indicator our and opportunities, international XX hydrogen projects. We've the and in derivatives from Currently, markets byproducts. as to gas significant of supporting these to loading also natural both producer all hydrogen and the a seen remains our has of our $X.X our continue

for storage investment We and our In to cycle the questions. our services. half continued timeframe summary, now creating projects an of the average, decisions months for shareholders. we the the and drive value infrastructure optimistic by support highly next to represent out to general, while growth within call currently owner XX- the operators on terminal in awarded While are be monitoring bid as projects long-term well remain continues XX specialty to opportunity out in gather to other and on deliver. Over are as our as are vessels, open of our expected momentum. and positioned based uniquely of that XX-month projects control, pipeline pipeline we will projects move require made and current the in believe factors I

Operator

question [Operator Davidson. Thielman D.A. Instructions]. our comes from Brent from first And

Brent Thielman

just is the question we long to I for the John? the on start and see in of business industrial persist the results process facilities. think growth? to And you How First that, might some before guess, drive outlook what return do -- softness a

John Hewitt

facilities. process So it's on industrial

backlog we've project First 'XX. then of there that it. in at awarded, really significant are that already. the 'XX, board of look the fiscal And I across some was start will project you drive That mid will funnel got PIF, all, it There's good here opportunities opportunities, was now. when think a good fiscal

looking get then awarded? we're those how I is at prospects short-term segment do growing, the So term, think are longer period that So not but I think quickly where strong. a

Brent Thielman

I And this we impact all if think of of some the shorter the in taking Okay. guess moving pieces does in, view of sort just term, about group that business the return your quarter the seem a some EBIT groups opposite be seems the to the or of be to what profitability that to to maybe up? given business ramping positive in fourth return just now in

John Hewitt

Yes.

changed So from of outlook the to quarter the changed X obviously, outlook our not the out has long the move the for revenues of next fourth that period has term.

growth we the quarter, segment. think So Terminal and Infrastructure Storage Solutions strong about the we're the segment for and Power revenue Utility and when fourth expecting

earlier, be in the outweighed and but down, the will Industrial Facilities Process said As growth that by will other. the be

growth at to the get be in quarter think fourth it about thinking strong last So of were sequential will the fourth quarter, third back you're over and I we level year. when the the it quarter, will

I know get there don't So the quarter? will profitability all get fourth the we'll to that way. in we

fiscal significant the think in there those in a it 'XX, segments. first quarter, the will as I that. ramp again, looking quarter? we're make be in get move we can profitability at revenues the half second And toward -- continue still move those we'll first think X of we year. to into Will And 'XX. I is then

Brent Thielman

guess this, of seeing in want indicated just what's actually All right. of the of now? I more sense the to one, the last demand remarks. And to trends business piece sort back right is that recent Any helpful. a I of Maybe John. or there that customers become could business? of utility to tailwind for when The electrical be portion as the from That's what happening come you in the counter sort your

John Hewitt

Yes.

there. thoughts I think a of couple comments and

as I you softness in of in calendar market some this -- seen well. if our -- you've operate you think of peers that year probably saw some that the larger beginning

probably it's little smaller impactful us, geographic because more bit For of a our footprint. us for

dynamic but our in not spending so And bit number gotten size with project a client base seen smaller. -- our of opportunities, to we've them geography changes the necessarily some of core the has related the

being projects very And opens competition. I it return range those the we meets so on where mean, those our a projects expectations for projects. thoughtful we're door for about how those we up more that price that I price within think

some limited of doing the larger we're base, to projects that individual our for in amounts things some spending, of clients projects. and that them, quantity So a there done have size both work we've quality quantity, front client expand into in and of of slate in move past a

area I seen you, Brent, can And so we cycles operated XX see I -- we've mean we mean, that these market utility that tell and the years. is thing I the least unique I through in would think occasionally other in -- And area. not probably XX, us. in for our this is for we've history,

amount but next so in there. significant of of couple your right downturn to repair our Spent We years a of money And down a spending had lot Sandy. also a cycle a local happened thing us. I to mean a Hurricane for clientele Sandy, pretty after to upgrade us systems is not a Hurricane was their of bit similar this in from severe activities. the only

pressure are all pretty next here comfortable strong and over feel that, themselves reverse things this sliding it's in couple unfortunate But that those for same projects the the of that, remarks, the downward we've happened. the things revenue quarters. all -- major a And to convergence the once said have you At right. happening as quarter. time, you -- us, the thing to I we out that's in created and got third as those So -- overall, of it's my on going got at move kind of we

Operator

from Franzreb John our & Company. question from comes Sidoti And next

John Franzreb

or left I'd than I'd John, where electrical a saying start, cyclical the phenomenon? longer that may just that? quarter in you are The downturn to sure in I understand this. it X referenced you that's Or market, like make be duration you off. utility

John Hewitt

I the middle think think I -- it's of it in we're now.

think there was we plenty we that was of -- thought but earlier, I still opportunities started there softness some see for out us. to

so adjust And normally what the when do we to have but we it do can't and these and to our turn they around approach overnight. we see downturns, market cycles

so to to cycle And to we're base and client expand client able until not doing, we deal expand our our footprint think like of changes not, we're be to addressing. -- in I to But said, where able our I market things we're in spending, doing them and turns address that some we be we're with base parts the it Northeastern around. those region, what how the doing for market by we're our going may going that --

Kevin Cavanah

the it's months delivery peak remember one thinking be just of into a to when summer is less demand, the also and the that power about when because things ]. summer moving and customers at the be will naturally spending power on we're time John can [ think often our work I timing electrical months we're

John Franzreb

anything along those the in there's are they Makes why right, sense, the lines? you projects seen Right. Right. shifting that large on any I'm regard commonality if to Kevin. are curious being delayed, And to have

Kevin Cavanah

to the scope internal projects able position has getting for review contract been commonality contract those an been that's completion both to a to in be us. into whether projects of that's to award The probably of completion from and an process in -- their addition getting in is start, processes, of also of in some that governance those scope No. whether

so And final where for so of sort gotten of feels a to projects, sure that's There to approved are projects, backlog. Directors. happened. time like to to an why projects. be happening what award They're it go. different get able us They're is the than Board the to contract from pre-COVID that start, longer. And it it's our major I'm a by solid there's that's have a took going phenomenon But like or clients, we not the amount of

It's no just risk to through there. timing So the just that longer. contracting process there's gotten has get

John Franzreb

-- margin. of in the renegotiated, XXX Is basis right. that's gross good retro priced? it to that should go-forward hit And a a hit as you believe Okay. said All been to regards that kind about service contract I the point that That's hear. basis? we on onetime a to was How contract segment was think

Kevin Cavanah

it that Industrial and segment. in the basis hit It big this It But a was bit -- last was I contract, contract. the to impact more primarily, onetime consolidated year little forward, that much to the a we're the as margin lower. the was think margins. impact that moving X-year significant be of in a was quarter will this Process was really applying change a should to impact think I XXX you of point and Facilities That -- think

we've previous for of accounting. what So recognized percentage we consistent with the see something margin this contracts accounting and really construction we've that's completion revenue. on adjusted It's the we're just when longer-term

John Hewitt

in they whatever make dollars caught going in for reason, making and maintenance client and that activities, up how they're with and and so to mean, not activities changes fundamentally issue. issue get not period. reimbursable issue is we it. for is this a relationship It's spend client, on a execution else not something And I their This an contemplating them. the change their turnaround work performance a there. a John, work our over is it's X-year some

what accounting adjustment of that. as because And said, the that's an we that to led so have And of Kevin we contract. reevaluate size had has to X-year to period us of entire the make

John Franzreb

Okay. out work to get pull talk And potential your a continue levers I you to about cost profitability? restructuring way still guess I'll as Can little there back or you one could savings into or you that last back bit question, actions any queue.

John Hewitt

Right.

in So to projects. timing of to continue in it. about the what we the find We between timing backlog -- those for we're What's that. I mean, we our know commitments have clients cost making opportunity pipeline, and the we structure and manage our balance of

has to backlog. planned some businesses. And weren't X the that. But do to not record some the done services significant estate last want that us some the We've markets over so do lot that we to exited we're We've have company. future We've we some provide. of focus of build -- today, real gotten We've this and continuing businesses. to do. any things and We've of sold years. That we've a strategic properties company out to the the into the restructuring focus allowed

And see add over and consolidated to more start we've to built organizations so into have, to that our as ability our going we revenue, backlog services the we continue time. structure we're leverage I think backlog to start cost shared roll to

so efficient. areas, good I are. continue to in we pretty we we to think not where be think find business the that's areas say, where will look continue we And But feel more we can to for

Operator

And [Operator our Davidson. follow-up question Brent Thielman Instructions] comes from from D.A.

Brent Thielman

than ago the at terms in environment least seems it appetite of massive by I was at over guess, of commentary, most sort me, spend based XX it's it even is here, increase your to XX better the here months. to customers, book to and last business just XX been months in the of a John, to look XX And areas. on

of thoughts going billion of work rate $X.X burn some your at thoughts build here the is going and context be Your pick ability point. the curious that business will upon fact all things But maybe up on here book be there. those more just forward. I'd you just to to in a burning your obviously

John Hewitt

good a question. Yes. No, that's

of pretty things part that have is of we So projects of the move think the those The opportunity one of share getting going -- on are our timing pipeline winning handicap. forward. solid of projects fair to that to our we as

since think backlog. And I size timing on backlog, to build to the themselves continue continue those end increase maintain to very present both we've I they -- build the the some that has build in QX that backlog even we've will -- and us the projects very ability over that give cases, strong been a the the dramatic been in backlog. build of perhaps years, think almost able of XXXX. happened last X of in to fortunate Remember to be on

you've And us said, don't backlog on enough been we've us long so I that think quarter-to-quarter. around judge

been to more the great long-term been quarters. line. we've it's able last it's for backlog trend the Although of build But that XX

as revenues the next that flow that could like have book-to-bill quarter we X start but increase said, at to below be or could ]. the [ a dramatic a X of backlog, then out X quarter So you X be where could

maintain in build out we to on quantity this as feel there, fiscal the so through able size that are And in both move we're or to and projects 'XX. we backlog going be quality,

Brent Thielman

underabsorption I guess mentioned the you aspect wanted I ex ask and it And to just Yes. I direct margins that about that you think have. quality of the too, don't

I think, are pretty good.

margins? is on climate in the growth prospects seeing this through that XX% know based the bids does there of I really the you've sort but of you're what XX% execute on what's are today? -- on to sort starting coming meant the that your point, terms business progress, to of earn this And As what as above of seen that how this? I you can bid mean maybe view impact start

John Hewitt

on those for ability through our projects, risk the funnel returned think think to on the more gross seen the those profile have And right larger I escalation today, applications more bid normalized to contingency I a return are to margin historical opportunities we has application, sure make we've coming projects. the projects that projects, levels. especially the on

to and that. I have we that about as services mean good and lower our feel portfolio projects of do overall some we of projects but projects strategic those able small work it, do to have and so to to higher apply value for still maintenance projects. workforce, part And and we they're build client -- other in day-to-day added why be it relationships margins

And to opportunity a and about continue build the historical a so we gets got our good I backlog potential margin feel that to maintain think back pretty to that's levels.

Kevin Cavanah

that just where on overheads got A And the it the allows which -- markets. is markets backlog because recovering we've significant to eliminating us gross the that it got, the has funnel, couple supports percentage. of allow we're probably us be fully of thoughts we've should strength the consistently margin most been the issue of under-recovery us issue also to other

Brent Thielman

Okay.

-- phenomenon demands bit seems of Sorry, it's guys the a an one source. more more already? on be that for emphasis it's Can maybe there's me, I for out that you rhetoric a guys power going coming maybe bridge more And I for be recognition potential it as of as guess get sort maybe ways going the of what there's on forward, if increased gas have but going the quite or guess, gas it peak picked to power is work, been And how a all loan kind using know that sort market positioned up to just I other utilities. power. though around you demand that that, seems of and in better see forward? of you than of shaving you are sort within

John Hewitt

LNG, the business, Yes, there, from for positioned think NGLs we're us, the mean of domestic through gas both I and downstream, I the demand kind look market and through both well really, think mid-step natural both like for gas positioned use oil we're crude globally related and facilities storage, well a in liquid at -- gas domestically. really I use. international for it into down in the think processing through midstream I

think I positioning so And is great. our

to the well be around construction I our design, as elements the provide storage. our fabrication the provide process one able to as storage, think brand with and to ability deal internally ability to cryogenic under

gives shaving position us unique in For instance, facilities a that at market. peak

will on a are expect -- opportunities to the we X great And those are compete and and so for far. But over to in we shaving be who good bidding other near us. the in we like peak the those got set there We term, see proposing markets We've against. looking reputation and months projects we -- market competitive the -- that. in next we'll and brand pretty be that X LNG out in were

going that a better on for the larger market for those add all of same also more in side opportunity that's backlog. But expectation the so almost that those to upgrade which markets infrastructure even lot repair other a dynamics of those even of is into projects are is thing certainly our even us, And to and existing we on the there's happening creates our should be inspect equipment able equipment projects, upgrade our a wrap they're our gas go someone smaller existing and cryogenic though around can other to engineering facility. Again, repair and but of liquefaction or go and boil competition narrows existing in really pieces an the of or ability in that storage and provide construction infrastructure our to that our ability full to to down solution expertise with off projects clients.

near there in projects. number aren't And so million the of out necessarily they're big again, kind overheads. of the could And absorbable us, opportunity for they good provide a be They those but projects, in sub-$XX them good term. margins,

well think And natural very from so and gas we're gas-related increased natural products. for I positioned demand

Operator

And like questions. over I'm to back call further Kellie the no I would showing Smythe remarks. closing now turn to for

Kellie Smythe

Thank you.

X Boston. As Matrix Cross Stifel participating June be on Sector X at will a in upcoming Conference and the reminder, Insight

Matrix you like and our Company to on please to contact attendance Relations Investor you'd or information If participation me have website. Service at additional event through for Thank free like your conversation management, time. feel this a with would

Operator

participating. concludes for today's Thank you. call. you Thank This conference

You disconnect. may now

Matrix Service (MTRX) 9 May 242024 Q3 Earnings call transcript